State of Financial Services: Why Financial Advisors Are More Accessible Than You Might Think

In this series, professionals debate the state – and future – of their industry. Read all the posts here and write your own (use #MyIndustry in the body of your post).

It’s no secret that my industry, financial services, has an image problem. People who haven’t worked with an advisor often assume that we only want to sell stocks, and that we put our own needs before theirs.  Or they think the financial world is too complex, markets too volatile, or that you need to be rich to work with an advisor. 

Most people who already work with a financial advisor understand the value an advisor can provide them. In fact, client satisfaction has rarely been higher across the industry. But for many of those who are not working with a financial advisor, the industry comes off as inaccessible. Many don’t know how to meet an advisor. Some think that they aren’t qualified, and many more have little understanding of the value and services an advisor can provide to them and their families. Too often, these people avoid the markets altogether, or attempt to go it alone by making investment choices with little or no guidance. This is where we can make a difference.

I know how much people in this industry truly care about their clients. But I also know that we can do a lot better at letting the world know what our industry goal is really about: helping people to worry less, while providing them with the advice they need to be more confident about all that they can achieve in their lives. 

I was reminded of this recently when one of our advisors told me about a client whose parents were contemplating moving from their home to an independent living facility. The client and her parents wanted to make the move, but they weren’t sure about all the financial implications — they were afraid they’d run down their savings.  The advisor met with the client and her parents frequently, walked through all their personal goals as a family, and helped them plan the smartest way to make the move happen while continuing to provide more to their children and grandchildren.  

Most people are interested in getting answers to the most pressing questions on their minds: Will we be able to pay for college? Can I afford to start my own company? How can we assist our aging parents and our grown children — at the same time? 

In the years since the financial crisis, my company and others have taken significant strides when it comes to changing the underlying conversation with our clients. Where once we might have focused heavily on market performance benchmarks and financial returns as the primary means of gauging success, today we view success more from the perspective of how well we’re understanding and meeting a client’s personal goals.

Taken from our work in behavioral finance, there are a few questions an advisor should ask at the start of any relationship: “What’s the primary intent of your money?” “Do you feel you have not enough, just enough or more than enough?” “Who would you like to include in a conversation about the goals you are trying to achieve?” Of course, there are many more questions to cover early with a client; including the degree of risk they are comfortable taking based on their goals. But when we ask the right questions early, interesting things start to happen: We start not to care so much about benchmarks and numbers, and we focus on personal outcomes.

The more we as an industry can commit ourselves to understanding our clients’ needs at every level, the better chance we have of earning the trust of a broader public seeking answers for their own financial future. Changing lives for the better. As far as I’m concerned there’s no better way to bolster our industry and remain an important contributor to our communities. 

John Thiel is the head of Merrill Lynch Wealth Management and is responsible for the strategic management of 14,000-plus financial advisors and 6,000 client associates, as well as more than 200 private wealth advisors.

Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) and other subsidiaries of Bank of America Corporation.